Print Friendly HOUSE BILL NO. 274 – Amusement devices, tax
HOUSE BILL NO. 274
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H0274...............................................by REVENUE AND TAXATION
AMUSEMENT DEVICES - TAX - Amends existing law to provide that purchase at
retail of amusement devices shall be a sale subject to the state sales tax;
to provide that the charge for using an amusement device shall be subject
to the state sales tax; to provide a formula to compute the tax; and to
provide the responsible party or entity for ultimately paying the tax and
02/17 House intro - 1st rdg - to printing
02/18 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 274
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE SALES TAX; AMENDING SECTION 63-3623B, IDAHO CODE, TO PROVIDE
3 THAT PURCHASE AT RETAIL OF AMUSEMENT DEVICES SHALL BE A SALE SUBJECT TO
4 THE STATE SALES TAX, TO PROVIDE THAT THE CHARGE FOR USING AN AMUSEMENT
5 DEVICE SHALL BE SUBJECT TO THE STATE SALES TAX, TO PROVIDE A FORMULA TO
6 COMPUTE THE TAX AND TO PROVIDE THE RESPONSIBLE PARTY OR ENTITY FOR ULTI-
7 MATELY PAYING THE TAX AND FILING RETURNS.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-3623B, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-3623B. AMUSEMENT DEVICES. (a) For purposes of this section the term
12 "amusement device" shall mean all coin, currency, or token operated machines
13 and devices which are used for amusement including, but not limited to, game
14 machines, pool tables, juke boxes, electronic games and similar devices.
15 (b) In lieu of the imposition of sales tax upon the use of the
16 amusement device, the owner or lessee or person having the right to impose a
17 charge for use of the amusement device must pay an annual permit fee of
18 thirty-five dollars ($35.00) for each such device The purchase at
19 retail of amusement devices shall be a sale subject to the taxes imposed in
20 this chapter .
21 (c) The charge for using an amusement device shall be subject to
22 the taxes imposed in this chapter and the tax shall be computed by multiplying
23 seventy percent (70%) of the gross proceeds from each amusement device by one
24 hundred seventeen percent (117%) and applying the applicable tax rate estab-
25 lished in this chapter to the product thus computed. The owner or lessee of
26 the amusement device shall be the person responsible for filing all returns
27 and remitting all taxes due relating to the proceeds of the amusement device.
28 Upon payment of the permit fees, the state tax commission shall
29 issue the permit(s) to the owner or lessee or person having the right to
30 impose a charge for use of the amusement device. Such permit fee may be
31 increased in a proportionate amount by the commission if the state sales tax
32 rate increases.
34 (d) All applications for a permit renewal must be made to the state
35 tax commission on or before July 1 of each year. Such application shall con-
36 tain the same information required on an application to secure a seller's per-
37 mit under this chapter and shall be accompanied by the annual permit fee due
38 for each device.
40 (e) The state tax commission shall adopt a uniform system of pro-
41 viding, affixing and displaying official decals, labels or other official
42 indicia evidencing that the owner, lessee, or person having the right to
43 impose a charge for the use of the amusement device has paid the annual permit
1 fee for such amusement device. No person subject to a permit fee under this
2 chapter may impose a charge or collect any consideration for use of such
3 amusement device unless such official decal, label, or other official indicia,
4 as required herein, is affixed to such amusement device.
6 (f) In addition to the penalties set forth above and in section
7 63-3634, Idaho Code, the state tax commission may assess the following penal-
10 (1) If any owner, lessee, or person having the right to impose a
11 charge for the use of any coin, currency or token operated amusement
12 device in this state shall violate any provision of this section or any
13 rule promulgated under this section, the commission may assess penalties,
14 of fifty dollars ($50.00) for each device for failure to pay timely permit
15 sticker fees.
17 (2) A person who knowingly secures or attempts to secure an amuse-
18 ment device permit sticker under this section by fraud, misrepresentation,
19 or subterfuge or uses any permit issued under this section in a fraudulent
20 manner shall be subject to a penalty of up to twenty-five thousand dollars
23 (g) The state tax commission shall impose the penalties provided in
24 this section by a notice of deficiency determination in the manner provided in
25 section 63-3629, Idaho Code, which shall be subject to review as provided in
26 section 63-3631, Idaho Code.
28 (h) The commission may revoke all permits of any person who oper-
29 ates any amusement device without complying with the provisions of this sec-
30 tion. Notice of revocation shall be given in the manner provided for deficien-
31 cies in taxes in section 63-3629, Idaho Code, which shall be subject to review
32 as provided in section 63-3631, Idaho Code.
34 (i) Permits issued under this section are transferable to another
35 person only after written notice of the transfer is given to the state tax
STATEMENT OF PURPOSE
This legislation provides for a revision to Idaho Code 63-3623B
to repeal provisions allowing for a permit fee in lieu of the
collection of sales tax fees generated by coin, currency and
token operated machines and devices used for amusement.
There will be a $150,000 increase in sales tax revenue to the
State over the current revenue provided by permits.
CONTACT: Rep. Frank Bruneel
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 274